Poland: GDP expands at the slowest pace in more than three years
November 30, 2012
In the third quarter, GDP increased 1.4% over the same quarter last year, which was below both the 2.3% expansion recorded in the second quarter and market expectations of a 1.8% increase. In fact, the reading represented the slowest pace of economic growth observed since the second quarter of 2009. Compared to the previous quarter, economic growth increased a seasonally adjusted 0.4% (Q2: +0.2% quarter-on-quarter). The deceleration in the third quarter was mainly driven by a deterioration in the domestic sector. Private consumption added a meagre 0.1% in the third quarter (Q2: +1.2% year-on-year), while government consumption expanded 0.2% (Q2: +0.5% yoy). In addition, gross fixed investment swung from a 1.3% increase in the second quarter to a 1.5% contraction in the third. Moreover, a negative shift in inventories also contributed to the deterioration in domestic demand. On the external side, exports expanded 0.7% (Q2: +2.6% yoy), whereas imports fell 3.7% (Q2: -3.1% yoy). As a result, the external sector's net contribution to overall economic growth fell from 2.7 percentage points in the second quarter to 2.1 percentage points in the first.